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Bitcoin rose to $70,000 for the first time, even as traders appear to be turning their attention elsewhere in search of higher returns on fringe tokens known as memecoins.
Tokens like Dogecoin and Pepe posted double-digit percentage gains on Friday morning, adding to the impressive rallies seen throughout the week. Ether, the second-largest cryptocurrency by market value, is up about 16% so far this week, or more than double that of its largest peer.
“As Bitcoin consolidates at current levels and ETH relatively outperforms in the near term, eyes will surely focus on altcoins and the specific sub-narratives that begin to spin,” said Chris Newhouse, DeFi analyst at Cumberland Labs.
After hitting $70,000 on Friday, Bitcoin quickly pared its gains to trade around $68,000. Ether approached $4,000 for the first time since December 2021.
Ether is benefiting from growing expectations that the token will be next to gain approval from the U.S. Securities and Exchange Commission to be offered through exchange-traded funds. Rising demand for the Bitcoin ETFs approved in January has been the main catalyst for the token’s more than 60% rally this year.
Memecoins have long been a phenomenon among retail cryptocurrency investors and promoters, who see microscopic prices as an opportunity to quickly reap huge returns despite the lack of traditional fundamentals. The Shiba Inu token was considered the most popular in the last bull market, while many in the industry consider Dogecoin to be the original memecoin. Traders are positioning PEPE, WIF and other newcomers as the next big opportunity.
“As capital continues to deploy into private markets, retail has begun to note emerging narratives to take note of when an eventual ‘altcoin season’ emerges in the wake of a potential rotation out of ETH and across the broader ecosystem.” broad,” Newhouse said. .
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